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AMD’s first quarter revenues up 71%

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AMD's first quarter revenues up 71%

Sunnyvale (CA) – AMD today reported yet another successful quarter. With Spansion off its shoulders and boosted by an increase in Opteron processor sales, the company saw its sales climb to $1.33 billion and net income jump to $185 million.

Compared to the first quarter of last year, in which the company reported sales of $780 million (including Spansion $1.23 billion), AMD achieved a sales increase of about 71%. The combined loss of AMD’s and Spansion’s business came in at $17.4 million in Q1 of 2005, which was turned into a $185 million profit (AMD only) in the most recent quarter. As AMD does not provide the numbers for AMD’s net revenues in Q1 of 2005, the improvement in net earnings is unclear at this time.

However, based on operating income, AMD said its numbers increased from $64 million last year to $259 million in Q1 of 2006

According to chief financial officer Robert Rivet, the sales increase was driven by “strong customer demand for AMD64 single and multi-core processors.” The Opteron processor reached new record sales and helped to increase the average selling price (ASP) of AMD’s products. Gross margin improved from 57.2 to 58.5%, largely due to a changing product mix, higher desktop and mobile ASPs and increased manufacturing efficiencies, AMD said.

The company expects second quarter sales to be flat or slightly down from the first quarter. However, flat revenues would still mean a 65% improvement from comparable sales in the second quarter of 2005.

Now on its own, AMD’s former memory unit Spansion today reported an improved quarter result as well. The company increased sales by 30% from $433 million in Q1 of 2005 to 562 million in Q1 of 2006. Net loss was $52 million, down from $109 million last year.